ARM (NASDAQ:ARM) Stock Price Up 10.8% – Should You Buy?

ARM Holdings PLC Sponsored ADR (NASDAQ:ARM)’s share price shot up 10.8% on Thursday . The stock traded as high as $349.42 and last traded at $335.27. 14,174,448 shares were traded during trading, an increase of 71% from the average session volume of 8,269,173 shares. The stock had previously closed at $302.71.

ARM News Roundup

Here are the key news stories impacting ARM this week:

• Positive Sentiment: Fresh analyst upgrades and upbeat commentary around AI infrastructure demand are fueling bullish momentum in ARM, with the stock hitting new all-time highs. Can Arm stock climb higher after fresh AI-driven analyst upgrades?
• Positive Sentiment: Coverage highlighting ARM’s AI data-center opportunity and its AGI CPU platform reinforces the view that the company could be a major long-term winner from AI buildout trends. ARM Targets the AI Data Center Opportunity With New AGI CPU Push
• Positive Sentiment: Broker commentary comparing ARM favorably within the AI chip-design space is keeping investor attention on the company’s growth potential versus peers like Synopsys. ARM vs. SNPS: Which AI Chip Design Stock Should Investors Buy?
• Neutral Sentiment: Recent insider selling by William Abbey may be noted by traders, but it was a relatively small stake reduction and has not changed the company’s growth narrative. SEC insider filing
• Neutral Sentiment: Valuation concerns are starting to surface after ARM’s sharp run-up, which could temper enthusiasm if investors decide the shares have gotten ahead of fundamentals. Arm Holdings (ARM) Valuation Check After Strong Recent Share Price Momentum
• Negative Sentiment: A reported U.S. antitrust probe into ARM’s chip licensing practices remains a potential overhang, even though it has not yet derailed the stock’s recent advance. Arm Holdings plc (ARM) to Face US Antitrust Probe over Chip Tech, Bloomberg News Reports

Analysts Set New Price Targets

Several brokerages have recently weighed in on ARM. Rosenblatt Securities boosted their target price on ARM from $175.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Jefferies Financial Group set a $290.00 target price on ARM in a report on Thursday, May 21st. New Street Research upgraded ARM from a “neutral” rating to a “buy” rating in a report on Thursday, February 5th. TD Cowen upped their price objective on ARM from $165.00 to $265.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Finally, Barclays upped their price objective on ARM from $200.00 to $250.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Twenty analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $208.79.

ARM Price Performance

The stock has a market capitalization of $354.22 billion, a price-to-earnings ratio of 399.13, a PEG ratio of 11.67 and a beta of 3.40. The business has a fifty day moving average of $190.61 and a 200 day moving average of $146.68.

ARM (NASDAQ:ARM) last announced its earnings results on Wednesday, April 1st. The company reported $0.60 earnings per share (EPS) for the quarter. ARM had a return on equity of 12.43% and a net margin of 18.37%.The company had revenue of $1.49 billion for the quarter. On average, equities research analysts expect that ARM Holdings PLC Sponsored ADR will post 1.12 EPS for the current year.

Insider Activity

In related news, insider Richard Roy Grisenthwaite sold 24,339 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $209.15, for a total transaction of $5,090,501.85. Following the transaction, the insider owned 5,543 shares of the company’s stock, valued at approximately $1,159,318.45. This represents a 81.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Spencer Collins sold 51,961 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $211.73, for a total value of $11,001,702.53. Following the transaction, the insider directly owned 51,125 shares in the company, valued at approximately $10,824,696.25. The trade was a 50.41% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 279,266 shares of company stock worth $57,502,031 in the last quarter.

Hedge Funds Weigh In On ARM

Several hedge funds have recently bought and sold shares of ARM. Capital Research Global Investors acquired a new position in ARM during the 3rd quarter worth about $243,098,000. Northwestern Mutual Wealth Management Co. lifted its stake in ARM by 2,623.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,671,787 shares of the company’s stock worth $182,743,000 after acquiring an additional 1,610,403 shares in the last quarter. Hyperion Asset Management Ltd acquired a new position in ARM during the 3rd quarter worth about $202,980,000. Employees Provident Fund Board acquired a new position in ARM during the 4th quarter worth about $120,241,000. Finally, Arrowstreet Capital Limited Partnership raised its stake in shares of ARM by 1,203.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 945,152 shares of the company’s stock valued at $142,983,000 after acquiring an additional 872,644 shares in the last quarter. Institutional investors and hedge funds own 7.53% of the company’s stock.

About ARM

Arm Limited (NASDAQ: ARM) is a global semiconductor IP company best known for designing energy-efficient processor architectures and related technologies that underpin a wide range of computing devices. Founded in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology and headquartered in Cambridge, England, Arm develops the ARM instruction set architectures and core processor designs that chipmakers license and integrate into custom system-on-chip (SoC) products. The company operates a licensing and royalty business model rather than manufacturing chips itself.

Arm’s product portfolio includes CPU core families (such as Cortex and Neoverse lines), GPU and multimedia IP (Mali), neural processing units (Ethos) and a suite of system and physical IP blocks.